Google has won a highly prized deal with MySpace.com to serve Web search and advertising listings to the nearly 100 million members of the News Corp.-owned social network, besting rival Yahoo in the bid.

On Monday, MySpace parent company Fox Interactive Media said it had entered into a pact with Google that spans three years and nine months and gives the search giant exclusive rights to provide Web search results and sponsored links across MySpace. Google also will power search and ads for other Fox Interactive properties including RottenTomatoes.com and Scout.com. FoxSports, which is aligned with Microsoft's MSN, is not part of the deal.

Under the terms of the agreement, which will begin in the fourth quarter, Google must guarantee Fox Interactive minimum payments of $900 million over three years, as long as Fox meets certain traffic and other commitments.

The deal is a blow to Yahoo given that MySpace's advertising results have long been served up by Yahoo's search division. The agreement also ends a months-long hunt by MySpace for a new partner, a quest driven by growing demand among its members for Web search.

On an investor conference call Monday, News Corp. President Peter Chernin characterized the deal as the first of many with Google and said that when MySpace members leave the site they typically jump to the search powerhouse. By integrating Google's technology, search will be seamless for MySpace members, he said.

"Ultimately, in the totality of the deal, Google was the preferred supplier," Chernin said, referring to a highly competitive bid for the business that included Yahoo and all the top-tier search providers.

Google CEO Eric Schmidt said his company was eager for the chance to team up with MySpace because of the social network's trajectory over the last year. In July, MySpace became the No. 1 ranked Web site in the United States based on number of visits, above the numbers of Yahoo Mail, according to research firm Hitwise.

"When we looked at what was growing on the Web, all our internal metrics pointed to Fox Interactive," Schmidt said on the conference call announcing what the executives called a quick but complicated deal.

"It's important to move Google to where users are, and that is where user-generated content is," Schmidt added.

Quick start for Fox Interactive
The pact could be lucrative for both companies, but it's especially key for Fox. News Corp. formed Fox Interactive 10 months ago following the $580 million acquisition of MySpace; and since that time, many investors and executives have questioned whether the social network could turn a profit from its thriving free community. Search-related advertising, a business worth as much as $8 billion annually, is a step in that direction.

For Google, the deal secures an important source of traffic and ad revenue, giving it added exposure to a thriving young audience of millions on MySpace. Roughly 100 million MySpace members will be accessing Google's search tool from the network. That could also calm any fears the search giant might have had about an expanding and unwieldy force on the Internet--social networks--which could have proved a larger threat to the company without such an agreement.

Kudos to G for expanding their reach. No this is not expensive. Although I haven't examined MySpace metrics and user demographics, me thinks that 80-100M GenY (and X) eyeballs with relatively good amounts of disposable income... and more importantly, the desire to PART with that income = good for Google, AdWords, AdSense and of course, the end advertiser.

Considering Yahoo's somewhat incumbent position within MySpace, they likely decided to walk away from an unprofitable deal. MySpace claims it will be receiving the majority of the rev share arrangement (see Tech Crunch blog post). Google really had nothing to loose, since they don't have a competing social network to speak off and Yahoo does. For these reasons, Google is the perfect partner for MySpace. Some of the terms of the agreement that have come out so far seem to suggest this deal could be quite one-sided. It may even be more profitable for MySpace than News Corp developing or acquiring their own search engine (ie, Ask.com or Technorati) -- certainly a lot less risky. Google may have been thinking defensive strategy here.

Lets not forget that MySpace is owned by Rupert Murdach who owns that most vile of news organizations called Fox. An organization which is about anything but news, it is about controlling people's mind and thoughts to allow USand Israeli invasion and massacre of one country after another.I mean about 100s of Thousands of people have been killed in Iraq, Gaza &#38; now Lebanon over the last 5 years, while Fox reports these killings as just and encourages for More &#38; More......!Do you want this same organization now controlling your children "eye balls" online too???If you do, or if you dont care, just keep in mind that today it is Iraqi and Lebanese that are being slaughtered while US media which goes from Fox, to Wall Street Journal, to Myspace, to Google, etc. Lie &#38; Lie about it, but tomorrow it could beyour country or children that are being slaughtered by these same forces.Are u going to wait until then to realize how dangerous it is for the control of allinformation (aka "eye balls") to be in the hand of these few companies??That is why I Urge you to get your own (Countries) equivalent of MySpace, or search engine, or auction site; FREE your mind from being controlled by these handful of US companies for obvious reasons. Tell your government officials that the security of your country is far better served by investing $20Mill to build your own local searchengine, or Xspace, than $20Mill on one Tank or one Plane.

How about this: Maybe the fighting in the Middle East has been going on for hundreds of years, long before Fox arrived on the planet. How about a few MIND controlling Middle Easterners are getting EVERYONE pain, grief, heart ache, innocent and guilty deaths. Stop blaming Fox, they are just a huge media company (read huge equals dumb most of the time). And, how the hell does a TV station controls someone's mind unless THEY want to be controlled or believe what they hear?

MySpace is a terrible technical place to be. The only thing that you can really do is "add friend". What about IM buddy list browsing, friend radars, text messaging, collaboration? This is just another GeoSpace. I understand the owners have cashed out, and GREAT for them. When is it going to get better?

Thankfully I'm not the only old-school net player (old school is NOT Altavista, but rather BBSing, Sysops and DARPAnet/MILNET and 110bps)... that is so very perplexed by the utter ugliness of both graphical appearance and visuals of 99.9% of MySpace sites I have visited.

I have a hard time swallowing the fact that Myspace has grown so much that Google will drop nearly $1 billion on ads for this site. The recent controversy with Myspace could mean a poor investment for Google. In the next few months (years?) Myspace will have to make changes in its security policies which could equal less and less exposure. However, less exposure on a 100 million person directory still means big time exposure and linksbacks in the near future, but with how the site has been viewed lately, the future is unforseeable. <a class="jive-link-external" href="http://www.techknowbizzle.com/2006/07/myspace-social-network-or-social.html" target="_newWindow">http://www.techknowbizzle.com/2006/07/myspace-social-network-or-social.html</a>

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